Leonardo (LDO) Q2 2026 earnings summary

Executive summary

• H1 2026 saw significant growth in orders, revenues, and profitability, with new orders up 44.6% year-over-year to €16.3 billion and revenues up 12.2% to €10.0 billion, driven by major contract wins and the consolidation of the IDV business.

• EBITA rose 34.3% to €780 million, and adjusted net income increased 74.4% to €476 million.

• The integration of IDV from April 2026 contributed accretively to profitability and backlog, with integration activities progressing as planned.

• Upgraded full-year 2026 guidance, reflecting higher new order intake, EBITA, and FOCF, with net debt expected to decrease.

• Strategic focus on accelerating program execution, technology investment, and expanding partnerships, with notable progress in multi-domain capabilities and M&A.

Financial highlights

• Orders reached €16.3 billion in H1 2026 (including IDV), up 44.6% year-over-year; backlog rose to €58.6 billion, up 30.1%, and book-to-bill ratio at 1.6.

• Revenues increased 12.2% to €10.0 billion; EBITA up 34.3% to €780 million; ROS improved to 7.8% (+1.3 p.p. year-over-year).

• Adjusted net income grew 74.4% to €476 million; FOCF improved by 39% to -€249 million, reflecting better operating performance and seasonality.

• Group net debt increased to €3.25 billion, mainly due to the €1.6 billion acquisition of IDV and dividend payments.

• EBITDA reached €1,122 million (+26.9%); EBIT margin rose to 6.6%.

Outlook and guidance

• Upgraded 2026 guidance: new orders ~€28.2 billion, revenues ~€22.1 billion, EBITA ~€2.21 billion, FOCF ~€1.37 billion, net debt ~€2.2 billion.

• Guidance reflects continued strong demand, improved profitability, and the full-year contribution from IDV.

• Double-digit ROS targeted for FY 2026.